Tuesday, January 13, 2009

Infosys Phantom Clients

Infosys (INFY) announced mediocre results. As the worlds economy slows down outsourcing opportunities decline. There is just less work to be done in any jurisdiction. Here is the problem I have with their press release. They keep mentioning they picked up this client and that client for one type of work or another.

They never mention the name of the client or the financial value of the relationship. Investors are being expected to believe blindly without any transparency of any description. In today’s environment governance requires transparency. If the new contract is material the investment community needs disclosure. If the contract is not material why is it being mentioned in the earnings release?